How to engage your membership

In a previous life, I worked for an organization that did a great job of mining the existing database. While we were always on the lookout for net new business, we had built up a healthy stream of recurring revenue and could exist just fine servicing our clients and selling them new products occasionally. As we developed and sold new products and services to the existing client base and upgraded their aging systems every five years, we generated the necessary revenue and the business was thriving.

I look at what credit unions are doing today and think they could do a better job of mining the existing member base or field of membership. How often do credit unions reach out to existing members to let them know that family members can join the credit union? It would seem like an easy ask since the primary member obviously enjoys their relationship with the credit union.

I remember when my two children got accounts at our credit union. They didn’t have any money other than birthday money or a small allowance, and their membership at the time would not have made a significant difference to the credit union. However, ten years later they both have share draft accounts, debit cards, loans, and a credit card. Through my membership the credit union reached my children. The long game is important.

There are credit unions where most of their growth comes from indirect lending. People show up at the dealership wanting to drive away in a shiny new car, and wa-lah, the credit union has a new member. These people didn’t seek out a membership at the credit union, and many of these loans are lost or stolen weeks later. We all know that if a member doesn’t fully participate in the programs you offer, that they rarely become one of your best members and often times you simply start collecting on the minimum balance once the account has become inactive. That isn’t a long-term strategy.

What processes does your credit union have in place to turn these indirect members into quality memberships at your credit union? You need to drive home the message that they are now owners of the credit union and not just customers at a bank. You need to encourage them to open draft accounts, use mobile and home banking, and learn the credit union philosophy and jargon.

Investing in a good on-boarding program can pay huge dividends. If you don’t have one, get one. It is that simple. Start by emailing, texting, and sending letters to new members via an automated onboarding system so that these new members understand why credit unions are better. Let them know that now they are part of a family, and their family members can also join. Monitor your success. Are you retaining more of your indirect or new accounts month over month? If not, don’t wait to ask for help, the success of your credit union depends upon it.

Cross-selling is yet another way to get more wallet share from your existing members. Most core systems have cross-selling products, but many do not have sales tracking processes in place. Tracking sales and rewarding employees appropriately is one way to increase your results in your cross-selling strategy. 

Cross-selling doesn’t have to be limited to e-Statements and bill pay. Cross-selling is more effective coming from your employees. They don’t have to know all the ins and outs of all the products and services but being aware the credit union has a solution available is key. Your tellers interact with your members daily. Most of them know their names and are familiar with their families. If they come in with an issue or a problem about their car, house, or college debt, your tellers could suggest financial consulting or a loan product that would be useful to the member. Just being able to discuss these items in a friendly manner, opens the door for opportunity. 

Your strategies for onboarding members and cross-selling members need to become priorities if you want your existing membership to become more engaged in your credit union. There are plenty of tools out there to help you, you just have to find the right ones!